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Selection and Evaluation of ERP

Selection and Evaluation of ERP. Clare Anne D. Capito MSIT. Problem Statement. The primary problems in ERP selection are as follows : What are the general rules to remember when selecting an ERP vendor ? What is the best practice in choosing an ERP?

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Selection and Evaluation of ERP

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  1. Selection and Evaluation of ERP Clare Anne D. Capito MSIT

  2. Problem Statement The primary problems in ERP selection are as follows: • What are the general rules to remember when selecting an ERP vendor? • What is the best practice in choosing an ERP? • What are the steps/procedure in choosing an ERP? • Is customization of existing system advisable? • What are the factors to be considered in ERP evaluation? • Are the bigger, more expensive packages better?

  3. ANALYSIS What are the general rules to remember when selecting an ERP vendor? 1. There is no such thing as a “one size fits all” ERP system. 2. Make time and right decision in ERP vendor selection process. 3. Getting people to change how they do their daily jobsmust have high levels of involvement in your company from the beginning. 4. All products have specific strengths and weaknesses. 5. Naturally stronger in some areas and weaker in others. 6. Every company’s needs are slightly different and customization is always required. 7. It’s fine to solicit help from a third-party consultant. 8. You should be heavily involved in the implementation so that you can be sure you will derive the value you paid for. 9. Level of trust with one vendor versus another. 10. Ask for several references in your specific industry 11. Finally, there is your team.

  4. What is the best practice in choosing an ERP? • make sure vendor competencies match your requirements • you must also check vendors’ training and support resources • treat your ERP project as a change-management project.

  5. What are the steps/procedure in choosing an ERP? • Step 1. Form a project team and collect all possible information about ERP vendors and systems. • Step 2. Identify the ERP system characteristics. • Step 3. Construct a structure of objectives to develop the fundamental-objective hierarchy and means-objective network. • Step 4. Extract the attributes for evaluating ERP systems from the structure of objectives. • Step 5. Filter out unqualified vendors by asking specific questions, which are formulated according to the system requirements. • Step 6. Evaluate the ERP systems. • Step 7. Discuss the results and make the final decision.

  6. Is customization of existing system advisable? Although some customization is inevitable, major modification of the software with the purpose of adapting it to existing business processes is difficult and certainly not recommended. Most organizations need therefore to substantially re-engineer their processes in accordance with the software’s requirements and the embedded industry’s best practices.

  7. Are the bigger, more expensive packages better? That depends. There is no doubt that there is a relationship between functionality and cost. But with this greater functionality also comes greater complexity. Greater complexity gobbles up resources, extends implementation times, and drives up implementation costs. For large complex organizations, highly functional software is indispensable. However, for a small company, even if the supplier were to give you the software for free, you probably won’t have the resources to implement and maintain it.

  8. Conclusion It is important to spend the time to scope the entire project, from start to finish. Work with the chosen ERP vendor to map the critical milestones and chart your course to success.

  9. Recommendation • Before buying an ERP from a vendor, make sure that the rules mentioned above are taken into considerations. ERP selection is not a simple task, that’s why every detail must be checked in order to avoid future problems. • I recommend that in choosing an ERP, the best practice must is before trusting a vendor make sure they match your requirements and you have a third party consultant to help you decide/check the ERP to be purchased. Don’t depend on the vendor only. • The steps mentioned above are very good, I believe that if it is followed there is no reason for mistakes. • Customization of softwares is a part of buying an ERP, there is always a needed change. Because no system is fitted for everyone, there is always difference that is why customization is really inevitable. Choose a vendor that is ready for that changes to be made.

  10. The factors in ERP evaluation must also be taken in consideration. Never neglect it because it is part in choosing an ERP. Listen to experienced people in evaluating an ERP, you can learn from their experience. • ERP selection and evaluation should not depend on the cost. What is important that it match your needs. • Finally, always remember that in choosing an ERP, the buyer must make sure that they had hire a dependable vendor, someone who can give the business the right ERP with the right cost.The company should also not depend everything to the vendor, the buyer must make his team that will focus in the ERP to be bought. Someone technical and will check every detail of the ERP. The vendor must provide training to the representative of the company and make necessary changes or add ons if the buyer wants to.

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